The Personal Financial Planning Process

It’s never too early or too late to start planning your
financial future. But when it comes to financial planning, we all
have different goals and objectives. Sound financial advice and the
right investment strategy can determine how well you live today—and
in the future. By following these six steps, you can begin building
the foundation for a solid financial future:

Step 1: Choose a professional financial advisor

Choosing a professional financial advisor is an important step in
the financial planning process. A trusted financial advisor can offer
you expert advice and help you create a personalized financial plan.
When establishing a new relationship, it is important for you to
understand the level of financial planning services that will be
available to you.

Additionally, you and your advisor should discuss and agree upon:

Fees charged for financial planning services

Responsibility for fees rendered by other professionals

Expected time frame for the completion of various services

Frequency of annual plan reviews as well as costs associated with reviews and amendments

Step 2: Identify your goals and objectives

Although it’s important to set realistic financial goals,
it’s also important to dream a little. Consider ranking your goals
and objectives by level of importance and setting reasonable timeframes
for completion. Before determining if your goals and objectives are
attainable, you will need to spend some time gathering your personal
and financial data and assessing your current financial situation.
Some common examples of personal financial goals and objectives include:

Paying for a child's educational expenses

Purchasing a second home

Gaining financial independence

Planning for your retirement

Ensuring that your estate passes to your heirs according to your
wishes

Step 3: Analyze your financial status

After you have identified your financial goals, the next step is
to determine how to achieve them. Your financial advisor can help you
analyze your finances, make specific recommendations and develop strategies
to meet your short- and long-term financial goals. Any recommendations made
by your advisor will factor in your timeframe, risk tolerance and
investment goals.

Step 4: Discuss your advisor's recommendations

This is where you plan for a face-to-face meeting with your financial
advisor to discuss the analysis and recommendations made in Step 3.
You should feel comfortable with the recommendations presented and
confident in your ability to achieve your financial goals.